SN Power downsizes Nepal ops

SN Power, the promoter of 650MW Tamakoshi-III and 67MW Kirne Hydropower Project, has decided to downsize its Nepal operations, citing lack of progress in these projects. It informed that a total of 11 employees have already left the company as part of the plan.

“SN Power’s efforts to develop hydropower in Nepal have suffered setbacks for several years, leading to a decision to put on hold new activities in Nepal,” Norwegian company said in a statement. “It does not mean that we are walking away from Nepal,” said Sandip Shah, vice-president and country director of SN Power.

He, however, complained they waited for two years to sign power development agreement (PDA) with the government for Tamakoshi-III. “The PDA negotiation has just begun,” he added. It has also applied for power purchase agreement (PPA) with the Nepal Electricity Authority (NEA) for Kirne. “Until these two tasks are completed, we are not making further investment here,” he said.

The estimated cost of Tamakoshi-III is $1.5 billion, while Kirne is estimated to cost $90 million. The company said it has so far invested $16 million in these two projects. Shah complained that there has been no progress in PDA for Tamakoshi-III for the last year. The company, which has also 56 percent stake in Himal Power Limited that developed , said it would continue to hold negotiations with the government to maintain the rights to develop the project.

“Outside the PDA negotiations for Tamakoshi-3, SN Power will, at the present time, only pursue new projects through our joint venture HPL,” read the company’s statement, adding that its decision to downsize will not affect HPL. “The SN Power will retain its ownership and engagement in HPL,” it said.

Source : EKantipur